North America Agricultural Tractor Market Outlook, 2029

North America Agricultural Tractor Market Outlook, 2029

A sizeable portion of the region's larger agricultural machinery business is comprised by the North American Agricultural Tractor market. This market includes the US, Canada, and Mexico, each having its own distinct farming practices, agricultural landscapes, and mechanical needs. Both in size and value, the North American agricultural tractor market is substantial. Farm equipment such as tractors is necessary for a number of agricultural tasks, such as planting, cultivating, harvesting, and ploughing. Crop area, farm sizes, technology breakthroughs, and economic situations are some of the elements that affect market size. Different agricultural practices and climates can be found throughout North America; examples include large-scale grain production in the Midwest, specialized crop cultivation in California, and huge animal operations in different parts of the country. In North America, tractors are employed in many different types of farming operations, such as vegetable cultivation, dairy farming, row cropping, and vineyards. Constant technical innovation and improvement characterize the North American Agricultural Tractor market. Producers work hard to create tractors with enhanced connectivity features, operator comfort, precision agriculture capabilities, and fuel efficiency. Modern tractors are becoming more and more equipped with technologies like variable rate application, telematics, auto-steer systems, and GPS navigation to increase farming productivity and efficiency. North America's average farm size varies by location and agricultural sector. Certain regions, such as the Midwest, are dominated by large-scale farms, but other places are more likely to have smaller family-owned farms and specialty enterprises. The need for various tractor sizes and configurations is influenced by factors such as crop varieties, labour availability, area, and budgetary restraints, which all affect the equipment needs of farms.

According to the research report ""North America Agriculture Tractor Market Outlook, 2029,"" published by Bonafide Research, the North America Agriculture Tractor Market is expected to reach market size more than USD 21 Billion by 2029. The market for tractors is expanding as a result of rising crop production, tillage, and planting applications in agricultural activities. The tractor industry is expanding due to the ease of financing and the widespread use of tractors in agricultural applications like gardens, orchards, and row crops. Additionally, one of the main drivers of the tractor market's expansion is the growing modernization of agricultural activities. Furthermore, the requirement for crop production has expanded due to population expansion. As a result, farmers are turning to employing tractors for agricultural and logistical applications in order to sustain the demand for agricultural products, which greatly boosts the tractor market. The tractor market is expanding as a result of an increase in the need for mechanization in the agriculture and transportation sectors. However, it's anticipated that the market for tractors would expand only so much due to commodity price instability. Conversely, government programs aimed at giving farmers subsidies are anticipated to offer rich prospects for the expansion of the tractor business in North America. 2020 saw a decline in the market for North American tractors as a result of lockdowns enforced by numerous governments across various industries. Tractor production has been halted by the COVID-19 epidemic, primarily as a result of protracted lockdowns in several key nations throughout the world. This considerably impeded the expansion of the tractor market in North America throughout the epidemic. Large manufacturing nations including the United States, Germany, India, and China once accounted for the majority of the North American tractor market; however, their economies were severely impacted by the coronavirus outbreak, which put an end to the demand for tractors. In order to respond to urgent emergencies and devise new methods of operation after COVID-19 infection cases begin to decline, North American tractor manufacturers need to concentrate on safeguarding their staff, operations, and supply networks.

Major Drivers

Technological Progress: The North American market for agricultural tractors is mostly driven by technological progress. Tractor manufacturers are always in the process of developing and incorporating cutting-edge features like GPS guiding systems, auto-steering, precision farming technology, and telematics. These technologies help farmers to maximize output and optimize field operations while also improving tractor performance and efficiency. More and more sensors, telemetry systems, and data collection tools are being added to modern tractors. Large volumes of data about crop health, equipment performance, and field conditions are produced by these devices. Farmers are able to make data-driven decisions about planting, fertilizing, irrigation, pest control, and harvesting by utilizing sophisticated analytics and machine learning algorithms to analyse this data. This leads to better results and increased farm profitability.

Scale and Consolidation of Farms: There has been a trend toward farm size expansion and consolidation in North America. Robust and strong tractors are necessary for large-scale farming operations to oversee vast acreages and a variety of cropping methods. High-horsepower tractors that can handle huge tools and carry out a variety of activities over vast fields are becoming more and more in demand as farms combine. Economies of scale help consolidated farms by distributing fixed expenses over a greater volume of output. Farmers can save more money per acre and increase operational efficiency by investing in larger tractors. Farmers can do chores more quickly and efficiently with larger machinery, which lowers labour costs and boosts overall profitability.

Major Challenges

Expensive Initial Outlay: Tractors are an expensive initial investment for farmers, particularly ones with sophisticated features and technology. For smaller-scale or financially strapped farmers, the high upfront price of tractors and related equipment might be a barrier, limiting their capacity to invest in contemporary machinery. Barriers to entry for new farmers or anyone wishing to enter the agriculture industry are caused by high initial investment expenses. For those who want to become farmers, the money needed to buy tractors and other necessary equipment can be too much, making it impossible for them to start profitable businesses or grow their farms. This restricts entry into the market and helps keep agricultural production concentrated on bigger, more well-established farms.

Competition and Market Saturation Numerous manufacturers are fighting for market share in North America's fiercely competitive agricultural tractor market. Squeezing profit margins and pricing pressures for manufacturers and dealers can result from market saturation and fierce rivalry. The abundance of tractor models, brands, and features on the market can be confusing for farmers, making it harder to make well-informed purchasing decisions. Navigating the vast array of tractor models, brands, and features available on the market can be challenging for farmers. Customers may feel overpowered by the multitude of options, which makes it challenging to determine which tractor best suits their own requirements and tastes. Making judgments can be complicated, which can cause delays and increase market volatility.

Based on the Engine Power, the market is divided into 30 HP, 30 HP - 100 HP, 100 HP - 200 HP, and Above 200 HP.

In the agricultural tractor market in North America, the sector with less than 30 horsepower is becoming more significant. In North America, small-scale and hobby farms are becoming more and more popular. Numerous people and households are engaging in backyard gardening, community-supported agriculture (CSA) programs, or small-scale agricultural pursuits. These smaller-scale farming enterprises are a good fit for tractors in the sub-30 HP range, which provide affordability, versatility, and mobility for jobs like mowing, tilling, and material handling. The market for tractors with less than 30 horsepower in North America is influenced by shifting population trends and lifestyle preferences. Urban and suburban residents' interest in backyard gardening and small-scale agriculture has grown as a result of the emergence of homesteading, suburban farming, and sustainable living practices. Compact tractors make it possible for individuals and families to engage in smaller-scale hobby farming, recreational gardening, and self-sufficiency.

Based on the Drive Type, the market is divided into 2WD, 4WD.

In the agricultural tractor market in North America, the 4WD (Four-Wheel Drive) segment is becoming more significant. When it comes to difficult terrain and bad weather, 4WD tractors perform better than their 2WD (two-wheel drive) counterparts in terms of traction and pulling capacity. The topography of North America is varied, with areas with different types of soil, marshes, and mountainous terrain among its features. Farmers can handle these situations more skilfully thanks to 4WD tractors, which also improve traction and decrease slippage in the field. In North America, the scale of farms is growing, and mechanization and consolidation of agricultural activities are becoming more and more popular. For large-scale farming operations to enhance output and manage vast acreages, robust and effective equipment is necessary.

Based on the Level of Autonomy, the market is divided into Manual Tractor Vehicle, Autonomous Tractor Vehicle.

Manual Tractor Vehicle is dominating the market. In general, manual-transmission tractors are less expensive than automatic or semi-automatic tractors. Due to their lower initial cost, manual tractors may be a more affordable option for farmers with limited resources or those overseeing smaller-scale businesses. Because of their ease of use and tactile feedback, manual tractors may be preferred by certain farmers. Manual tractors can give people who want a more hands-on farming experience or who grew up operating manual machinery a sense of familiarity and control that may be absent from more automated systems.

Based on the Application the market is divided into Harvesting, Seed Sowing, Spraying, Others.

In the agricultural tractor market in North America, the harvesting segment is becoming more and more significant. The broad range of crops grown in North America's agricultural landscape includes cereals, oilseeds, fruits, vegetables, and specialty crops. Different harvesting technologies and equipment are needed for different crops due to their unique requirements and obstacles. By pulling tools like grain carts, forage wagons, and fruit bins, tractors help with the harvesting of various crops in a flexible way by making the collection and transportation of harvested commodities easier.

Based on report market is divided into various major countries United states, Canada, Mexico. In the United States, agriculture is a large industry, and mechanization of farming is credited with contributing significantly to increased productivity, sales, and exports. Additionally, the industry is driven by the need for new tractors due to advanced nations' shorter replacement cycles 9 years such as the US. Furthermore, the nation's farmers have had access to timely subsidies for the purchase of agricultural tractors. As a result, even small-scale farmers have been able to purchase tractors and other agricultural equipment across the nation. Growing farm labour wages are encouraging farmers to purchase agricultural equipment, such as tractors, and are contributing to the market's expansion. An essential component of Canada's food production sector is the market for agricultural tractors. On farms, tractors are utilized for many different jobs, such as planting, harvesting, and hauling. Tractors that can manage greater power and duty are in demand as farms get bigger. The sales of powerful tractors are rising as a result of this. In the upcoming years, it is anticipated that the Canadian tractor market will continue to expand. Numerous factors are contributing to this growth, such as the rising cost of labour, the growing need for food, and technology advancements in precision agriculture. A select group of well-known companies, including Case IH, New Holland, and John Deere, control much of the tractor market in Canada. To meet the requirements of various kinds of farms, these brands provide a large selection of tractors. The selling of new tractors has been fueled by the proliferation and uptake of farm mechanization techniques throughout Canada. The two main product categories in Canada's organized agriculture market are tractors and agricultural tools. Mexico is primarily an agricultural nation, and the sector plays a significant role in the country's economy. The agricultural sector is split between small farmers who produce for their own consumption and the domestic market and the highly capitalized commercial sector that caters to exports. The market for agricultural tractors in Mexico is expanding rapidly due to the rise in demand for food production. The use of contemporary technologies in tractor production, such as sensors that help farmers maximize crop yields and GPS navigation systems for precision agriculture, is one of the major advancements in this industry.

Vendors actively invest in R&D to develop fundamental technology to establish competitiveness by enhancing core product technology in the agricultural tractor industry. Vendors differentiate themselves by enhancing product development, focusing on after-sales business, and cutting costs through greater operational efficiency. There is competition in the industry in the pursuit of large-scale farming. The agriculture industry is experiencing slow growth and tends to have a competitive environment, heavily influenced by price due to supply balancing demand. Price competition tends to be more significant for new tractor orders than aftermarket services. Considering the forecast for 2029, pricing for new tractor orders is expected to be a particularly influential competitive factor. Competition in the aftermarket portion of the tractor market is majorly against large, well-established national and global competitors and, in some markets, against regional and local companies.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Agricultural Tractor market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Engine Power
• Below 30 HP
• 30 HP - 100 HP
• 100 HP - 200 HP
• Above 200 HP

By Propulsion
• IC
• Electric

By Drive Type
• 2WD
• 4WD

By Level of Autonomy
• Manual Tractor Vehicle
• Autonomous Tractor Vehicle

By Application
• Harvesting
• Seed Sowing
• Spraying
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Agricultural Tractor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.